A recommendation to end Rs70 billion concession on different goods and imposing new taxes of Rs40 billion have been proposed for the upcoming budget.
Islamabad (Pakistan Point News – 27th May, 2019) The government is planning to drop an inflation bomb on public with increased taxes in the upcoming budget.
According to details, new taxes of Rs40 billion have been proposed in the next budget. The next budget is likely to make tough decisions on sales tax.
Sources said that a recommendation to end Rs70 billion concession on different goods and imposing new taxes of Rs40 billion have been proposed for the upcoming budget.
The budget proposes increasing sales tax on sugar, edible oil, tractors, and steel products while the General Sales Tax is likely to be increased from 17% to 18%.
According to sources, the 1% increase in GDP is likely to give a revenue of Rs40 billion.
The proposal presented for the next budget suggests that sales tax on sugar be increased from 7% to 18%, edible oil from 5% to 18% while on tractor from 5% to 18%.
A recommendation to increase duty of on steel products by Rs5600 has also been made. The budget proposes ending tax concessions for the salaried class.
Tax exemption limit is likely to be up to Rs6 million in the next budget.
